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Legislative Update - August 2007
August 1, 2007
REAP Passes and Is Signed by the Governor
Gov. Rendell signed legislation into law giving his approval to the
Resource Enhancement and Protection Act (REAP) that gives farmers tax
credits for installing conservation practices.
REAP provides transferable state tax credits to Pennsylvania farmers
who proactively plan and implement highly effective conservation practices
to reduce runoff. Businesses that sponsor such conservation projects
will also be eligible for corresponding tax credits. REAP will improve
water quality and strengthen our agricultural communities and the economy
statewide.
The bill provides personal and business state tax credits ranging from
25 to 75 percent of the cost to install best management practices like
barnyard improvements, riparian buffers, stream fencing and other practices.
The development of manure management plans on farmlands, and forested
buffers on non-farm lands, would also be eligible for credit.
Each farmer enrolled in the program is eligible for up to $150,000 in
tax credits which can be extended over a period of 15 years. There is
no limit on amount of tax credits a business sponsoring projects on
farms can be awarded.
The REAP Program will take effect on October 23 (90 days from the day
Gov. Rendell signed the bill into law) and will be administered by the
State Conservation Commission.
The law lays out a two-step application process for the tax credit 1)
a determination by the Commission the project is eligible so farmers
know they will receive the tax credit before they begin work, and 2)
the Department of Revenue formally issues the tax credit when the project
is certified as complete to the Commission.
Included in the legislation is a provision stating that all eligible
costs of a project shall include any of the services that may be provided
by a conservation district.
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